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Investing.com -- Brand Engagement Network Inc. (NASDAQ:BNAI) stock dropped 7% on Tuesday after the company announced plans for a 1-for-10 reverse stock split scheduled to take effect next month.
The reverse split, which will be effective December 12, 2025, will automatically combine every ten shares of BNAI common stock into one share. Following the implementation, BNAI will continue trading on the Nasdaq Capital Market under the same ticker symbol but with a new CUSIP number (104932 207).
No fractional shares will be issued as part of the restructuring. Stockholders who would otherwise receive fractional shares will instead get cash payments equal to the fractional amount multiplied by the closing price of BNAI stock on the trading day immediately before the effective date.
The company noted that the reverse split will not impact the number of authorized shares or the par value of its common stock. Continental Stock Transfer & Trust Company will serve as the exchange agent for the transaction.
Stockholders with shares held in book-entry form or through brokers will have their accounts automatically adjusted and won’t need to take any action, according to the company’s announcement.
Reverse stock splits are typically implemented to increase a company’s share price, often to maintain compliance with exchange listing requirements that mandate minimum share prices.
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